Posted on 05/16/2010 5:19:10 AM PDT by Diana in Wisconsin
The risk of a double-dip recession hasn’t abated, even after news of the huge European bailout in response to the Greek debt crisis.
World markets soared initially on the announcement of the nearly $1 trillion rescue plan, and then declined. But as the economist John Maynard Keynes cautioned long ago, such market reactions are basically a “beauty contest” — with investors trying to predict the short-term reaction that other investors think still other investors will have.
In other words, don’t view these beauty contests as a heartfelt response to a fundamental change in the economy.
In fact, there is still a real risk of a double-dip recession, though it can’t be quantified by the statistical models that economists use for forecasts. Instead, the danger stems from the weakness and vulnerability of confidence — whose decline could bring markets down, further stress balance sheets and cause cuts in consumption, investment and local government expenditures.
Ultimately, the risk resides largely in social psychology. It is the fear of fear itself, of which Franklin D. Roosevelt famously spoke.
From 2007 to 2009, there was widespread concern about the risk of an economic depression, but that scare has been abating. Since mid-2009, it has been replaced by the milder worry of a double-dip recession, as a count of Web searches for those terms on Google Insights suggests. And with that depression scare still fresh in our minds, sensitivity to the possibility of another downturn remains high.
(Excerpt) Read more at nytimes.com ...
“If ya’ll hadn’t been all afraid and stuff, you’d be wealthy right now.”
*LA LA LA* *FINGERS IN EARS* *LA LA LA*
No kidding!
The only double DIPS I see are the two currently in charge in Washington!
I thought Plugs Biden was tasked with getting us OUT of this fix? I thought his magic checkbook filled with taxpayer dollars was going to save the day?
FAIL!
“I think we are screwed so bad and so royally that they are intentionally keeping the truth from us for fear of bank runs and people hoarding stuff.”
And I think you very well may be right!
The Left actually believes they can do anything with words. It is why they so desperately try to control the message. The worlds economies are in trouble but the liberals think if we ignore this and feed the masses a steady diet of “happy talk” about “green shoots” etc, miraculously all will be fine once again.
These assclowns live in a world which only exists inside their addled brains.
I deal with many manufactures in my business segment. The only thing holding them back from increasing prices again is fear of lost sales and revenue. Most companies have cut costs to the bone and the only way to keep profitable will be to raise prices.
If oil spikes again this summer, that will be the nexus for price increases across the board.
And taking aspirin causes headaches.
Exactly.
When the economy really isn't recovering or a double dip occurs, they will redouble their efforts to silence conservative critics via the FCC and WWW regulation.
Free conservative speech will be be silenced.
Obama still has a bunch of cash from the Porkulous bill that should allow him to keep the economy from free fall until after Nov. After that, who knows. He’s betting the farm that he can keep at least a slight governing majority as long as everything here stays “normal” till after the elections.
But, that being said, the simple truth, that some people are waking up to is that it is all a shell game. There is no money, and the emperor has no cloths, to quote Brian Williams (something I couldn’t have ever imagined in a thousand years).
The biggest driver of a DDR in this country lies in what happens in Europe this week. The Euro is on the verge of complete collapse, and there are persistent rumors of Germany’s imminent departure from the Euro and the EU. If that happens, prepare for a very bumpy ride in this Country...
Well let's see. We've spent billions to stop our banking system from collapsing, and all we've accomplished is slowing the collapse down.
We've spent billions for "stimulus" jobs, and unemployment is still almost 10% with the U6 around 17%.
We've spent billions in extended unemployment benefits in hope of holding people over until jobs were created. Besides the "stimulus" jobs, few have been created, and now that money for the unemployment may be running out. Those lost benefits will result in lost consumer dollars.
Oh, and those billions we spent were borrowed, and we still have to pay it back.
According to any model that makes sense, this would mean we could be heading into a double dip recession without any influence from pessimism.
In other words, IT’S YOUR FAULT!
We had it all under control until y’all messed it up.
See! THIS is why y’all all need to just hand your 401k plans to Congress to manage for you.
Stupid peasants. Let the smart people think for you and go back to American Idol. /s
After all, we won. . . /s
It’s not real if you have a tenured professorship at an elite institution, or a job at the Treasury or Fed. Fear is for little people that don’t understand the great works of their betters. /snort
Yup, it our fault. It not the fault of Wall Street for stealing trillions of dollars from investors. It’s not the fault Wall Street for forcing American companies into sending millions of jobs overseas. And it not the fault of Congress for spending trillions of dollars it does not have. Nope it’s our fault. lol, and the NYT wonders why no one brother to read their crab any longer.
If I might add #9
#9 The out of control cost at the local, state & federal levels of govt for employees and their retirements.
“My observation is that the underground economy is alive and well.”
You know it, Baby! :)
Or Yellowstone!
Exactly! LOL!
I don’t care WHAT cute name they’re going to use, though. It’s coming, and it’s NOT going to be pretty. :(
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